Global Financial Crisis Management

Synonyms

Banking administration; Collapse; Crisis; Derivatives; Finance; Globalization; Instability

Definition

A crisis is a turning point in a sequence of events, or a time of instability or danger in which impending change is signaled. As it pertains to financial systems, a crisis is defined as loss of control or an unstable period in financial markets that normal control mechanisms cannot manage well.

Introduction

The system by which the world exchanges goods and services through financial institutions is global and called the international monetary system (IMS). Trillions of dollars-worth of exchanges are processed through this system each day. The players that compose this system include private financial institutions, sovereign and supra-sovereign governments and their regulators, multinational corporations, and billions of individuals and small businesses. Many types of banking, investment, and trade operations are in play on any given day, at all hours, weekends included. The...